In a bid to boost the financial hub as one of the outstanding players of the global takaful industry, the Dubai International Financial Centre (DIFC) is marking an emphatic participation at the 10th Annual World Takaful Conference.
Drawing the participation of 400 key industry players, the anniversary special edition, under the theme ‘Revitalising the Industry: A New Way Forward for Takaful,’ takes place from 13-14 April 2015 at the Dusit Thani Dubai.
With world-wide takaful contributions notching up stellar double-digit growth in 2014, the industry is fast emerging as a key component in the insurance sector when compared to conventional players.
The conference serves as a platform for discussions on takaful’s tremendous growth potential, and seeks to address the increasing product demand based on consumer demographics and rising income levels. The growing appetite for sharia-compliant products following the growing awareness on the sustainability of such products will also be in focus.
Speaking at the conference, Chirag Shah, Chief Strategy and Business Development Officer, Dubai International Financial Centre Authority (DIFC Authority), said: “DIFC is proud to play a contributing role in articulating Dubai’s vision of becoming a global Islamic economy hub. We have achieved a significant milestone with regard to the reinsurance sector, crossing the $1bn mark of gross written premiums by the end of 2013.”
According to an Ernst &Young Report, the global takaful industry is poised to reach over $20bn by 2017. The DIFC is currently home to many of the world’s leading insurance conglomerates, including AIG, Zurich, Allianz, MetLife, Lloyds of London, Swiss Re and Munich Re and retakaful players like Emirates Re and Takaful Re.
Shah added: “Although retakaful has witnessed significant growth as an Islamic alternative to conventional insurance, it still represents a small portion, approximately 2 per cent, of the overall insurance penetration in key markets. The sector is facing a multitude of challenges like the need for skilled professionals, lack of innovation, depreciating profit margins, the lack of a deeper pool of sharia-compliant investment opportunities, as well as issues of operating efficiency and scalability, among others.”
Over the last 10 years, the World Takaful Conference has established itself as the world’s largest and most influential annual gathering of leaders in the global takaful industry. WTC 2015 showcases cutting edge innovations and key enablers with the potential to boost growth in the international takaful market.